Request for Proposal (RFP) Accounting and Post-Payment Audit Services June 4, 2012
Table of Contents 1. Introduction... 3 1.1 Intent... 3 1.2 RDC Background and Current Environment... 3 1.3 General Definitions... 3 1.4 Summary of Services to be Provided... 4 2. RFP Proposal Submission Procedures... 6 2.1 Schedule... 6 2.2 Inquiries and Communications... 6 2.3 Submission Instructions... 7 3. RFP Proposal Format and Content... 7 3.1 Proposals Format... 8 3.2 Proponent Information... 8 3.2.1 Proponent Profile... 8 3.2.2 Proponent Key Personnel Qualifications... 8 3.3 Proposed Services... 9 3.4 Proponent Rates/Fee Structure... 9 4. Terms and Conditions... 9 4.1 Proposal Acceptance... 9 4.2 Confidentiality of Proposals... 10 4.3 General Terms and Conditions... 10 Appendix A: Title Page... 11 Appendix B: Current Payment Process... 12 The use, reproduction, dissemination or distribution of these documents in any form and all forms, including electronic format, is strictly prohibited without the express written permission of the Research & Development Corporation.
1. Introduction 1.1 Intent The Research & Development Corporation of Newfoundland and Labrador (RDC) is seeking proposals for Accounting and Post-Payment Audit Services for the corporation. 1.2 RDC Background and Current Environment In May 2009 the Government of Newfoundland and Labrador announced the launch of RDC to strengthen the focus, quantity, quality and relevance of R&D in Newfoundland and Labrador for the long-term economic benefit of the province. RDC will do this, in part, through significant direct investments in industry and academic-led R&D as well as providing advice and leadership in working with R&D stakeholders including industry, academia and government departments and agencies. RDC has no subsidiaries and operates independently of the Government of Newfoundland and Labrador. RDC currently relies wholly on provincial government funding annually for its lines of business and operations. Foresight, Finance and Operations. 1.3 General Definitions The following definitions will apply to this RFP. Term Closing Time Opening Time Proponent Definition The date and time on which proposals under this RFP are due and must be received as specified herein. The date and time on which proposals under this RFP will be opened. Person/Company who puts forth a proposal under this RFP. RDC Post-Payment Audit Page 3
1.4 Summary of Services to be Provided RDC is seeking proposals for Accounting and Post-Payment Audit Services. More specifically: Accounting The proponent will be expected to: Provide accounting advisory services on complex accounting matters. Perform specified audit procedures in certain areas as requested. Assist RDC in evaluating internal controls. Provide budgeting assistance as required. Provide other financial services as directed by the CEO, CFO or their designate concerning specific issues relevant to the ement systems, processes, and/or controls. Post-Payment Audit Until recently RDC employed a payment process which required 100% verification of costs claimed, regardless of claim size, claim amount, or client type. For claims of higher risk, RDC may elect to continue to apply this verification procedure. For claims of acceptable risk, RDC costs of the project that have been incurred. Before amending the current policy, RDC will need to implement a Post-Payment Audit process. This system will identify claims to be audited, with the objective of sampling sufficient claims so a conclusion can be provided on whether or not the payment process can be relied upon. Policies governing the current payment process are included in Appendix B. RDC Post-Payment Audit Page 4
The proponent will be expected to: Assign experienced staff to conduct post-payment assurance audits for RDC, by developing and documenting an audit plan for each engagement including engagement objectives, scope, conclusions, recommendations, action plan and resource allocations, to ensure compliance with contract terms and conditions and internal policies and procedures. Develop and recommend a sampling methodology including a preferred approach to sampling (sample design, procedures, processes, confidence level, and interval), audit approach, and reporting system to assure reliable conclusions on the soundness of the payment process. Establish quality assurance processes that reflect the risk level of the transactions under review. Recommend a standard, which will be the maximum error rate that can be tolerated in upon. Meet with RDC prior to the audit engagement to review the audit plan to assure compliance with all terms and conditions of the contract and internal policies and procedures. Administer the post-payment audit, in a manner best representing the interests of RDC. Represent RDC, as directed, in any negotiations with clients and other parties regarding audit matters. Base conclusions/results on appropriate and sufficient analysis and evaluation. Document relevant information to support conclusions/results. Provide RDC with an assurance report within 45 days from the audit engagement, detailing performance relative to its plan. The report must include significant exposures, control issues and adjustments. Report errors in two categories: (1) processing errors: could have been identified by application of the current payment process (2) client reporting errors: could not be identified by the current payment process. Identify potential opportunities to modify and enhance s payment process. RDC Post-Payment Audit Page 5
2. RFP Proposal Submission Procedures 2.1 Schedule The significant dates associated with this RFP are as follows: RFP Issue Date June 4, 2012 Deadline for Questions June 11, 2012; noon (Newfoundland Standard time) Proposals Submission Deadline June 15, 2012; 4:00 PM (Newfoundland Standard time) Proposal Opening Time June 18, 2012; 9:00 AM (Newfoundland Standard time) Proposed Work Start Date July 3, 2012 Proposed Work End Date To Be Determined 2.2 Inquiries and Communications With respect to this RFP, all inquiries and other communications with RDC officials is to be directed to the attention of: Nikki Kavanagh Manager, Payments & Claims Research & Development Corporation of Newfoundland and Labrador 187 Kenmount Road (2 nd Floor) P.O. Box 13067, Station A St. John s, NL, Canada A1B 3V8 Telephone: 709.758.0913 Fax: 709.758.0927 Email: nikkikavanagh@researchnl.com Written, fax and email inquiries and requests for clarification will be accepted up to the time indicated in 2.1 Schedule. Inquiries and requests for clarification received after this date will not be addressed. Verbal inquiries are not acceptable. Only written changes, alterations, modifications or clarifications are binding upon RDC. In order to be valid all such changes, alterations, modifications or clarifications shall be issued in the form of addenda and all such addenda shall become a part of this RFP. RDC Post-Payment Audit Page 6
2.3 Submission Instructions One Proposal package containing two (2) hard copies of the proposal must be submitted. Facsimile or email proposals are not acceptable and shall not be considered. One of the two copies is to be considered the original Proposal and must be signed by an authorized representative of the Proponent. Unsigned original Proposal shall not be considered and will be returned. The Proposal package shall be delivered to RDC by hand, courier or mail at the following address: Research & Development Corporation of Newfoundland and Labrador 187 Kenmount Road (2 nd Floor) P.O. Box 13067, Station A St. John s, NL, Canada A1B 3V8 Accounting and Post-Payment Audit Proposal Attention: Michelle Hyde, Procurement Coordinator Proposals must be received in full on or before 4:00 PM, June 15, 2012. Proposals received after that time shall not be considered and will be returned. Proposals not delivered in the manner and location as indicated above shall not be considered. 3. RFP Proposal Format and Content PROPOSALS MUST ADDRESS THE CONTENT OF THIS RFP. Proposals must clearly demonstrate a thorough understanding of the RFP and its stated requirements. RDC may disqualify and remove from further consideration any proposals that do not demonstrate this understanding and do not specifically address requirements as specified throughout. The proposal must include the following: proponent portfolio of experience qualifications of key personnel proponent rates and/or fee structure RDC Post-Payment Audit Page 7
3.1 Proposals Format Proposal must be well ordered, detailed and comprehensive. The Proposal shall be submitted in the following general format: Title Page: Completed in full Appendix A of this RFP. Table of Contents: Include page numbers, identifying all included materials. Section 1 Executive Summary Section 2 Proponent Profile Section 3 Key Personnel Qualifications Section 4 Proposed Services Section 5 Proponent Rates/Fee Structure 3.2 Proponent Information 3.2.1 Proponent Profile The Proposal must provide an overview of the proponent. Information must include the following: 1. Legal name, legal status and mailing address 2. Key representative for matters related to this RFP including name, title, telephone and fax numbers, e-mail address and civic address 3. Head office location; Website address 4. Description of the organization 5. Number of people currently employed in the business and other relevant information 3.2.2 Proponent Key Personnel Qualifications The Proponent must have demonstrated experience in the areas of qualification. The Proposal should contain the following information: 1. RDC is seeking a Proponent with experience in this field. The Proponent may include examples of projects similar to the projects described in this RFP in which the Proponent was engaged; 2. A minimum of three client references for whom the Proponent currently provides consulting services and key contact information for each; 3. Description of the P hem apart from other proponents; 4. List of personnel who will be assigned to work with RDC, including direct employees and/or sub-contractors. Identify their roles and responsibilities and rates, details of their RDC Post-Payment Audit Page 8
association with the proponent along with resume of their professional backgrounds and key references. 3.3 Proposed Services The Proposal must be clear, concise, and shall include: 1 Sufficient detail, in point form, on how the proponent will ensure compliance with all requirements. 2 Information or documentation required to meet stated deadlines. 3.4 Proponent Rates/Fee Structure The Proponent shall submit its financial proposal in Canadian dollars. Rates should be provided on an hourly basis and detailed by role/classification. 4. Terms and Conditions 4.1 Proposal Acceptance Proposal acceptance terms and conditions include: 1 Proponents are specifically advised that the lowest cost proposal will not necessarily be accepted. 2 RDC shall have the right, but not the obligation, to negotiate a formal contract with the successful Proponent. 3 This RFP and the Proposal will form part of any resultant Agreement by attachment or incorporation by reference. Claims made in the Proposal will constitute contractual commitments and warranties. 4 All terms and conditions shall apply to all subcontractors and the successful Proponent he successful Proponent shall be responsible for all work done by the subcontractors. 5 Any Agreement resulting from this RFP shall be governed by the laws of the Province of Newfoundland and Labrador. Any Agreement issued pursuant to this RFP shall be issued in the legal name of the Successful Proponent. RDC Post-Payment Audit Page 9
4.2 Confidentiality of Proposals All documents, records and information associated with this RFP are the exclusive property of RDC. RDC expressly forbids the use of these materials by any party other than the Proponent. All documents and other records in the custody of or under the control of RDC, may be subject to the Access to Information and Protection of Privacy Act, SNL 2002, c. A-1.1. Subject to the limitations of this Act, all proposals, resumes and other documents and other records submitted by a Proponent in connection with this RFP will be considered confidential, and financial and other proprietary information will not be disclosed unless required by law. 4.3 General Terms and Conditions 4.3.1 All proposals must remain valid and open for acceptance until July 3, 2012. 4.3.2 Proponents are solely responsible, without recourse to RDC, for any expenses they incur in preparing and submitting an RFP, and for their participation in the RFP process, including but not limited to, attending any interviews or presentations requested by the Evaluation Committee and providing any additional information that may be requested by the Evaluation Committee. RDC shall not defray, nor be liable for any reason, for any expenses incurred by Proponents in responding to this RFP. 4.3.3 All proposals and accompanying documentation received prior to the closing time are considered the property of RDC and will not be returned. 4.3.4. This RFP may be cancelled at any time. 4.3.5. This opportunity is subject to the provisions of The Atlantic Procurement Agreement and the Agreement on Internal Trade. Information on these Agreements may be obtained by visiting http://www.gpa.gov.nl.ca/ 4.3.6. In the event of any discrepancies between this RFP, the proposal submitted and the resulting Agreement, the Agreement will govern. 4.3.7. The Successful Proponent must be in good standing with the Workplace Health, Safety and Compensation Commission (WHSCC) or its equivalent in the jurisdiction where the Successful Proponent organization is located and must provide a certification letter to this effect prior to receiving any payments for this contract. RDC Post-Payment Audit Page 10
Appendix A: Title Page RESPONSE INFORMATION SHEET Request for Proposals (RFP) for Accounting and Post-Payment Audit Services: RFP Issue Date: June 4, 2012 Questions Deadline: noon; June 11, 2012 Closing Date and Time: 4:00 pm; June 15, 2012 Response Label: Research & Development Corporation 187 Kenmount Road (2 nd Floor) P.O. Box 13067, Station A St. John's, NL, Canada, A1B 3V8 Accounting and Post-Payment Audit Proposal Attention: Michelle Hyde, Procurement Coordinator Proponent Name: Proponent Address: RDC Contact Information (Primary Contact for this RFP) Name Nikki Kavanagh e-mail nikkikavanagh@researchnl.com Phone 709-758-0913 Fax 709-758-0927 Name Phone Fax e-mail Title Signature: RDC Post-Payment Audit Page 11
Appendix B: Current Payment Process Since its establishment, RDC has required 100% verification of costs claimed. It is the responsibility of RDC Payments Officer to process all requests for payment and to ensure compliance with the terms and conditions of the contract. Once a project is approved for funding by RDC, the client is provided with a complete claims package. Payment claim instructions are provided to the client as a component of this package. Claim instructions clearly state that supporting documents are required: Submit copies of supporting documents, e.g., purchase orders, cancelled cheques, invoices, or receipts. Original supporting documentation must be retained and readily available for examination in the event of an audit. In addition to required support, the client is also subject to monitoring by RDC as per the terms and conditions of the contract. Monitoring: The Company will, at its own expense, preserve and make available for audit and examination by RDC, or, the books, accounts and records of the Project and the information necessary to ensure compliance with the terms and conditions of this Agreement, including payment of amounts by or to RDC and to assess the success of the Project and R&D Proof of Concept Program. RDC will have the right to conduct such additional audits at expense as may be considered necessary using the audit staff of RDC, an independent auditing itors. Monitoring: Access to Premises Upon two business days notice to the Company, the Company will provide the representatives of Agreement or any element thereof and supply promptly on request such data as RDC may reasonably require for statistical or project evaluation purposes. Monitoring: Access to Third-Party Information and Premises The Company will assist RDC with the implementation of the Agreement and facilitate access by RDC to information from third parties and to the premises of third parties, relating to the agreement. On March 5, 2011, RDC amended its claims & disbursement policy to make a special consideration for materials issued from inventory: materials issued from inventory AND Any individual inventory item in excess of $150 must be ve RDC Post-Payment Audit Page 12
.. END OF RFP.. RDC Post-Payment Audit Page 13